Appendix 5 – Funding – indicative limits
| ADMINISTERED |
MATCHED | EXTENDED |
COMPREHENSIVE |
|
|---|---|---|---|---|
| LARGE SHAREHOLDINGS & DEPOSITS |
Max 1% SDL per deposit Max 5% SDL all large deposits |
Max 1% SDL per deposit Max 5% SDL all large deposits |
Board determined |
Board determined |
| NON-RETAIL FUNDING FROM BUSINESSES/ CORPORATES |
Max 10% SDL | Max 15% SDL | Board determined |
Board determined |
| TOTAL WHOLESALE FUNDING FROM FINANCIAL MARKETS (ie excluding central bank funding) |
None | Max 15% SDL |
Max 25% SDL |
Board determined limit, within statutory requirements |
| AGGREGATE REFINANCING RISK LIMITS (Retail + Business + Wholesale) |
Board determined |
Board determined | Board determined | Board determined |
| MATURITY STRUCTURE OF MARKET WHOLESALE FUNDING (excluding pass-through elements of structured funding) |
N/A |
max 5%SDL maturing in any rolling quarter max 10%SDL maturing in any rolling 12 month period |
max 5%SDL maturing in any rolling quarter max 10%SDL maturing in any rolling 12 month period |
Board determined |
| SINGLE NON-RETAIL/ WHOLESALE SOURCE (BY COUNTERPARTY GROUP) (excluding central bank funding) |
Max 5% SDL |
Max 7.5% SDL |
Max 10% SDL |
Board determined |
| ENCUMBRANCE (normal market conditions) |
Bank of England only |
Bank of England + Market Repo / posted margin only |
Normally, extended approach societies would not be expected to encumber more than 20% of balance sheet assets with market counterparties (that is, excluding assets encumbered under facilities provided by the central bank). But it is for each society to determine its own individual approach, based on its specific risk appetite, corporate plan and risk management capabilities, as set out in Chapter 5 of this SS. |
Board determined overall limits & sub-limits |
| FUNDING STABILITY | NSFR* |
NSFR* | NSFR* | NSFR* |
| MARKET FUNDING INSTRUMENTS |
Term deposits Loans Overdrafts |
Term deposits Loans Overdrafts Repo |
Term deposits Loans Overdrafts Repo CDs Fixed /floating rateMTNs Covered bonds ABS – RMBS/CMBS etc. CP |
All market available instruments |
| EXTERNAL RATINGS |
No | No | Likely to be only for covered bonds and ABS |
Yes (but optional) |
*NSFR parameters as finally determined in Basel/EU
- 01/01/2021